T2 Partners' Tilson, Tongue Split

Jul 20 2012 | 2:18am ET

T2 Partners is just a couple of Ts after its leaders announced plans to go their separate ways.

Whitney Tilson, who founded the firm 13 years ago, and Glenn Tongue told investors last month that they would end their eight-year partnership. Tilson will continue to manage T2's three hedge funds, while Tongue will take its SPAC fund to his new firm, Deerhaven Capital Management.

In the June 22 letter, Tilson gave investors five days to redeem their investments. He said he had sold off most of the funds' positions, both to facilitate investors' exits and to make the funds his own.

"As I resume the role of sole portfolio manager, it's critical that I rebuild the portfolio from scratch and truly 'own' the ideas," he wrote, adding that the new T2 would offer quarterly letters instead of monthly. Tilson said he had already begun to repurchase stock, including his favorite, Berkshire Hathaway.

On the split, Tilson, who made the letter public yesterday, and Tongue wrote that, "after careful consideration, we have decided to cease managing money together and will instead do so independently, in the firm belief that in doing so our investors will benefit over time. The friendship and admiration we have for each other is unchanged."

T2 said in February that it had $333.4 million in assets. Its eponymous flagship was up 9% through June, when it added 0.5%.

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